Final Draft: Jan, 2010
Account Management Guidelines
Account Establishment (WIP Clearing Funds 140xxxxx)
Is a new account required or can charges be added to an existing account?
(Account establishment will be determined by Physical Facilities Fiscal
Affairs.)
Plant Maintenance Work In Process (WIP) clearing accounts were established to
segregate transactions to facilitate recognition, verification, and reconciliation of WIP
clearing. This is done by 4 funds associated with responsible cost centers
4022999999 (WIP clearing) and 40229993000 Central Machine Shop (CMS). In
general, no charges should post to these accounts directly. The clearing accounts
are entered on a work order; responsible cost center and fund on the FM
assignments screen of the work order. Charges post to these accounts and the work
order as debits. Settlement or the affiliate upload process credits the work order and
the accounts.
Those funds and responsible cost centers are:
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14010000 4022999999 WIP PSCD Clearing. This fund and center
combination is used to record charges on a work order when the customer is
an affiliate of the university. Affiliates are those customers with a relationship
to Purdue University; however they do not have a university account number
to charge. The fund and responsible cost center are entered on a work order.
Subsequent charges post to the work order and the fund and center. Monthly
the Work Request Center processes a Public Sector Collections and
Disbursements transaction to credit the work order (fund and center) and
debits accounts receivable in the fund. The work order types for these
accounts are AFF for Affiliates.
14020000 4022993000 CMS PSCD Clearing. This fund and center
combination is the same as the WIP PSCD clearing account except that the
responsible area performing the work is Central Machine Shop. The work
order types for these accounts are CMS.
14030000 4022999999 WIP Conversion Account. This fund was established
for the purpose of assisting with the conversion of data from the legacy
system to the OnePurdue SAP system implemented 02/01/2007. All
conversions zeroed out. However the fund was never inactivated. Due to
misunderstanding on the use of the crosswalk from legacy to SAP, some other
transactions have posted to the fund. As of March 2009, we are reconciling
the account and clearing the transactions. Anticipated date to have this
complete is June 30, 2009. There should no longer be work orders
established using this fund.
14040000 4022999999 WBSE WIP Clearing. This fund was established in
September 2007 to facilitate corrections associated with FMDERIVER Work
Breakdown Structure Elements (WBSE) funds. Occasionally a wrong fund is
entered on a work order or a wrong fund is entered with a WBSE on the
FMDERIVER. The WBSE is entered as a receiver on the work order with the
fund entered as 14040000. Work order types for this account are CONS for
construction.
Final Draft: Jan, 2010
Account Maintenance, Transaction, and Document Management
Every effort should be made to charge the appropriate account in order to
minimize the processing of correcting documents.
A.
Maintain Appropriate Balances
It is the responsibility of all areas to ensure overdrafts are managed
appropriately.
It is the responsibility of the Work Request Center (WRC) to monitor and
reconcile the Plant Maintenance clearing accounts. There is no appropriate
balance and since the accounts represent unbilled charges, the accounts will
most likely be in an overdraft status. Conceptually, after settlement and the
PSCD upload, the fund and center expense balances should be zero. However,
since Plant Maintenance is one of the first systems to complete processing at
month end, the OnePurdue real-time system does allow additional expenses to
post prior to actual month end closings. Secondly, there will be accounts
payable and accounts receivable balances on the Balance Sheet for these
funds.
PSCD Clearing Accounts
At least monthly or after the PSCD upload has processed, run the tcode IW39
Display PM using the variant PM_PSCD for AFF work orders. Verify that all
charges have been uploaded.
Other Clearing Accounts
Immediately after the settlement execution, run the ZFI_SETTLEMENT_RPT by
work order type to verify that all charges were posted.
For all Clearing Accounts
Monthly run the FMRP_RFFMEP1AX - All Postings tcode for any transactions
that does NOT reference a work order. In general, all postings to the clearing
accounts should reference a work order and should never be direct postings.
Monthly, run the balance sheet report; ZFI_SMUR_BALSHEET - SMUR Balance
Sheet for funds 140xxxxx The report will have the following:
Operating Cash
Accounts Receivable
Accounts Payable
Verify the accounts receivable by running PSCD report tcode:
PSCD Z_PSCD_REPORTS - PSCD Reporting
Line layout AGECOST
Open Items at Key Date (end of month date of Balance Sheet Report)
Fund range 14010000 to 14040000
The grand total on the report should equal the Accounts Receivable total on
the Balance Sheet.
Review the customer accounts and the date DUE column to see how old some
of the accounts are. Because these are WIP clearing accounts, contract
Central Machine Shop and the Financial Manager, Service Enterprises of any of
Final Draft: Jan, 2010
their accounts you are concerned about on the 14020000 fund. Contact PSCD,
Accounts Receivable staff about any concerns on the 14010000 fund.
Verify the accounts payable by running G/L Account Balance Report
FAGLL03
G/L Account 201010 and 201015
Open Items at Key Date (end of month date of Balance Sheet Report)
Click on custom selections icon.
Select General Ledger Items
Click on Fund.
Enter fund range 14010000 to 14040000
EXECUTE
The balance on the G/L account balance should equal the balance on the
Accounts Payable SMUR Balance Sheet.
B. Getting started
Only Physical Facilities Fiscal Affairs will be requesting new clearing accounts.
C.
Procurement and Account Management
Procurement of goods is accomplished by Physical Facilities Fiscal Affairs
Material Expeditors (SRM shopping carts) and Central Machine Shop personnel
via a material transfer (intramural invoice voucher). When purchase orders
have been created against work orders, it should be noted that commitments
are recorded against the departmental fund or the 140xxxxx funds as entered
on the work order and the appropriate responsible cost center. A goods
receipt of the material is posted as an expense to the same account. Labor is
also posted to work in process as a secondary expense G/L account. Monthly
the settlement (recharging) of these work orders generates a debit to the
work order settlement account (department fund and center/RIO/grants order)
and a credit to the work in process clearing (140xxxxx fund and respective
responsible cost center 4022999999. Both the debit and credit entries carry a
secondary G/L account 890001 for WIP settlement.
D. Review for Allowability of Costs
A thorough review of all charges should occur to assure costs are allowable
and charged appropriately. This function is carried out by the Physical
Facilities Fiscal Affairs Material Expeditors, Central Machine Shop Business
Office Clerk V, and the financial managers for Building and Grounds and
Service Enterprises.
E.
Maintain Allowability Supporting Documentation
It is the responsibility of Physical Facilities Work Control Center, the material
expeditors, and CMS staff to maintain appropriate documentation for
expenses against work orders.
Final Draft: Jan, 2010
F. Verify appropriate Signature Approval
It is the responsibility of the separate areas to verify appropriate signature
approval on all documents charging work orders. The Work Request Center
in reconciling the accounts, will verify the appropriateness of document
types. No direct transactions should normally be processed against the WIP
clearing accounts. All transactions should post directly to work orders.
G. Records Retention
Plant Maintenance will maintain electronic records in accordance with
University record retention requirements as well as participating in the
OnePurdue archiving of records that will be taking place.
H. Follow Established University and College/School Policies
The procedures for WIP clearing will follow the university guidelines for
account maintenance. Additionally, the Plant Maintenance module is
configured to automatically provide standard posting transactions against the
WIP clearing accounts.
I. Department Payroll Default (Fund: 91010000)
There should be no direct payroll entries to any of the work orders nor to the
clearing accounts.
J. Payroll Errors Identified in the Payroll Process
Any payroll entries posting directly to the WIP clearing accounts or the work
orders will be corrected by the time administrator area for the department
originating the payroll charges.
CASH MANAGEMENT
Cash for Purdue University will be managed in a method, which maximizes
the University’s cash position and at the same time meets federal and/or
other regulations. Different aspects of program management contribute to
the effective management of cash. These include daily cash management,
overdraft management, cash deficit monitoring, and effective
communications among University staff.
Physical Facilities Fiscal Affairs is dedicated to providing monthly settlement
to all work orders and reconciling of the clearing accounts to facilitate
appropriate cash management for our customers.
CLOSE OUT MANAGEMENT
Currently, the only clearing account scheduled to be cleared is fund
14030000 which represented the conversion of legacy data to OnePurdue.
This is scheduled to be closed January 2010.